In March 2013, the government of India announced a change in the local input requirements for the participation in certain public purchases.



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Inception date: 12 Mar 2013 | Removal date: open ended

Public procurement localisation

 On 12 March 2013, the Ministry of Communications and Information Technology added Smart Cards to the list of manufactured electronic goods where a preference is given to domestic products in procurement due to security considerations by ministries.
The Notification specifies the minimum percentage of required domestic procurement, the percentage of the total value added that qualifies the product as domestically manfuactured and the inputs and processes that will be considered for assessing whether the product is classified as domestically manufactured.

The percentage of procurement for domestically manfuactured Contact and Contactless Smart Cards is 50%, while the percentage of total value added required in the Bills of Material (BOM) for the Smart Cards to be classified as domestically manufactured are:

  • For Contact Smart Cards, 30% of BOM in year 1, 45% in year 2 and 65% from year 3.
  • For Contactless Smart Cards, 40% in year 1, 50% in year 2, and 70% from year 3.

The Inputs in the BOM considered for the above would include the Card Body, integrated circuit chip, milling and embedding of the chip on the Card, assembly, testing and development.